A Brief for a financial case Essay Example | Topics and Well Written Essays - 500 words - 1

A Brief for a financial case - Essay Example o partners together with a team of experienced professionals, whom they hired, build a portfolio of investments that provided investors with a unique risk profile and substantial long-term returns (Bruner, p.672). Palamon’s investment strategy was to make bridge investments in companies that were in a process of moving from small, private ownership to the public capital markets. Palamon focused broadly on small to mid-sized European businesses in which it aimed to acquire control. To achieve its investment strategy of transforming from private to public ownership, Palamon required both funding and management ability. Palamon complemented their financial investments with advisory services to increase the possibility that the portfolio companies would successfully make it to the public markets. TeamSystem provided an excellent investment opportunity, but there were various challenges and risks facing the company, and Elson had to evaluate the viability of the investment in TeamSystem (Bruner, p.673). As Bruner, p.674, notes that Palamon investment process started with the development of an investment thesis taking into consideration the changes in the market, which included trade liberalization, new technology, and deregulations among others. Palamon looked for attractive investment opportunities using various ways. Palamon deal negotiations enclosed many issues including the management, the board composition and price of products of the company. In the investment process, the company looked for exit alternatives after they have fulfilled their objectives. Palamon identified an investment opportunity in TeamSystem, since the industry in which TeamSystem operated had extreme fragmentation and frequently changing regulations. Elson noted that, for the previous five years, TeamSystem Company had no audited consolidated financial statements. The significant players in the industry where TeamSystem operated were family owned firms which had limited access to global